feasibility report (final)

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Zachary Butler 135 Mathews Street Apt. 5 Fort Collins, CO 80524 (970) 297-8412 [email protected] May 9, 2014 Randy Hensley City of Fort Collins Parking Services Manager 215 N. Mason Street Fort Collins, CO 80524 (970) 416-2058 Dear Mr. Hensley: I have prepared this feasibility report to determine the viability of expanding Fort Collins’ electric vehicle charging station grid within the next six years. Based on three criteria considering the current growth trends, projected electric vehicle sales in this country and especially in Colorado, a major high-tech hub as well as state legislation and local policies, I have concluded that it is feasible to at least double the current grid by 2020. I am interested in providing insight by means of this report in addressing what is, to my mind, a critical part of the transportation infrastructure in our city. I look forward to your review and invite any questions you may have. You may reach me by phone at (970) 297-8412 or by e-mail at [email protected]. Sincerely, Zachary R. Butler

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Page 1: Feasibility Report (Final)

Zachary Butler

135 Mathews Street Apt. 5

Fort Collins, CO 80524

(970) 297-8412

[email protected]

May 9, 2014

Randy Hensley

City of Fort Collins Parking Services Manager

215 N. Mason Street

Fort Collins, CO 80524

(970) 416-2058

Dear Mr. Hensley:

I have prepared this feasibility report to determine the viability of expanding Fort Collins’

electric vehicle charging station grid within the next six years. Based on three criteria

considering the current growth trends, projected electric vehicle sales in this country – and

especially in Colorado, a major high-tech hub – as well as state legislation and local policies, I

have concluded that it is feasible to at least double the current grid by 2020.

I am interested in providing insight by means of this report in addressing what is, to my mind, a

critical part of the transportation infrastructure in our city. I look forward to your review and

invite any questions you may have. You may reach me by phone at (970) 297-8412 or by e-mail

at [email protected].

Sincerely,

Zachary R. Butler

Page 2: Feasibility Report (Final)

2

Is it feasible to double the number of Battery Electric

Vehicle charging stations within Fort Collins by 2020?

Zachary R. Butler

[email protected]

135 Mathews Street

Fort Collins, CO 80524

Page 3: Feasibility Report (Final)

3

Table of Contents

Page

List of Figures........................................................................................................ 4

Executive Summary …………………………………………………………...... 5

Background …………………………………………………………………....... 7

Methods/Criteria……………………………………………………………….... 9

Analysis ...………………………..……………………………....……………...

EV Sales and Ownership..................…......……………………………….

EV Sales Projections.......………......…………………………………......

Policy Making..............................................................................................

10-13

10

11

13

Conclusion/Recommendations......……………………………………………… 14-16

References ……………………………………………………………………..... 17-18

Appendix A: Charging Station Locations Map..................................................... 19

Page 4: Feasibility Report (Final)

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List of Figures

Page

Figure 1 – Fort Collins Parking Plan 8

Figure 2 – EV Charging Station at Ken’s Brake and Muffler 8

Figure 3 – Top 10 States for EV Market Share 9

Figure 4 – Global EV Sales between 2011 and 2012 10

Figure 5 – BEV Sales by Year; 2011 – 2014 11

Figure 6 – 2012 Global EV Sales, by Country 11

Figure 7 – BEV only sales forecasts based on studies by JD Power and Pike

Research

12

Figure 8 – Pilot program for EV charging stations in Fort Collins 14

Page 5: Feasibility Report (Final)

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Executive Summary

There has been a new trend among automotive consumers in recent years: electric cars

are becoming a common sight on our roads. Not just in Fort Collins, either – Pure plug-in

electric vehicle sales in the U.S. nearly hit 50,000 in 2013 alone (EV Rolls, 2013). The roads of

Colorado have also seen a jump in the number of electric cars, particularly around prevalent

technological hubs such as Boulder and Fort Collins – the state currently houses 0.4 percent of

electric cars, as of February 2014 (Shahan). Facing increasingly stringent emissions regulations

and the rising costs of fuel, people have started to buy into plug-in electric cars. The cities of

Larimer County have been partnering with local businesses in an initiative called Drive Electric

Northern Colorado as well as installing their own charging stations to meet the demand for

keeping electric cars going on the road.

It is probable, given the increase of electric cars on the roads in Fort Collins in the last

few years that even more will be joining conventional and hybrid cars on the roads. The city has

installed two charging stations and businesses account for the other eight, totaling about ten

charging stations primarily situated in northern Fort Collins (Drive Electric Northern Colorado,

2013). Now is an opportunity to accommodate an increase in electric vehicle ownership with

publicly available charging stations before it becomes a never-ending project trying to catch up

to EV (Electric Vehicle) demand.

Cities which have already undertaken programs to install a widespread EV charging

network have seen marked benefits, both economically and ecologically. The question for

determining the feasibility of expanding Fort Collins’ EV grid is whether it will be a beneficial

practice, given the estimated level of EV ownership. Determining whether current and projected

Page 6: Feasibility Report (Final)

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ownership will justify expansion will be crucial in determining the feasibility of doubling the

existing network’s number of stations by 2020. In this report, only BEVs (Battery Electric

Vehicles) will be mentioned. Since these vehicles comprise the smallest percentage of total

electric vehicle sales and BEVs rely solely on an outlet to charge, inferring this data will provide

the simplest points of reference for determining the feasibility of this project.

Page 7: Feasibility Report (Final)

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Background

The Front Range of Colorado has been a trendsetter for technological development for

several years. High-tech industry now calls cities such as Denver, Boulder and Fort Collins

home. With the advent of high-tech industry and educated citizens, the demand for automobiles

that are kinder to the environment and technologically advanced have become popular to the

point where they may soon be considered mainstream. However, therein lies a problem: with

growing popularity, the infrastructure to support electric cars also has to grow. As it happens,

there is a discrepancy between electric vehicle ownership and the availability of public charging

stations within Colorado and, by extension, within Fort Collins.

As with any mode of transportation, there are two primary ways of handling increasing

demand: either try to upgrade infrastructure early to accommodate anticipated demand, or

upgrade after the demand has come. The latter way often is a struggle, as the city would have to

try to accommodate overwhelming demand with limited space and resources. As of 2013, the

demand for EVs (Electric Vehicles) nationwide is growing (the U.S. holds about 26% of global

demand for pure-electric cars) (Global EV Outlook, 2013). Time is waning for the city to engage

in the former method to upgrade infrastructure for anticipated EV demand. This study will focus

on the city of Fort Collins and determine whether it is feasible to expand the charging station

network to a given density within the next six years.

The City of Fort Collins recently released a parking plan that outlines current parking

needs and plans to implement EV charging stations in public parking structures and some on-

Page 8: Feasibility Report (Final)

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street locations. While any improvement is better than what we, the driving public, currently

have, the city only plans to expand its EV charging network on a

limited basis in public lots or parking structures. It is entirely

possible for the city to partner with local businesses to close the gap

between charging station demand and available resources to allocate

toward upgrading the charging station infrastructure.

In order to make expanding the charging station network

for EVs a reality, the City of Fort Collins has joined an organization

called Drive Electric Northern Colorado, which helps the cities in

Larimer County reach more of its citizens with EV charging stations

provided by local businesses, such as Ken’s Muffler and Brake

(right). While this is a step in the right direction, progress may still be made,

and this study will determine whether it is feasible to reach out even further

so that all electric car drivers will be able to charge their cars while they are

away from home.

The primary determining factor regarding whether it is feasible to

add more charging stations will be the average EV ownership interpreted

from national sales statistics and Colorado’s market share, by percentage.

Figure 1 - Fort Collins Parking Plan (2013).

Figure 2 – Some local businesses like

Ken’s Brake and Muffler are installing

EV charging stations. Source: Drive

Electric Northern Colorado.

Page 9: Feasibility Report (Final)

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Methods/Criteria

This study will determine whether the current number of electric vehicle charging

stations can be doubled as part of Fort Collins’ parking infrastructure given the prospects of

current and future EV ownership growth trends. The study will incorporate current electric

vehicle ownership and charging rates as well as projected figures interpreted from national

statistics as well as data provided from local sources. For the purposes of this report, only BEVs

(Battery Electric Vehicles) will be considered.

The current estimated level of EV ownership

within Colorado and Larimer County, as interpreted

from national data and the state’s “market share” of

electric vehicles will be an important consideration for

both the locations of potential EV charging stations.

Currently, Colorado has 0.4 percent of the EV market

share in the United States (Shahan, 2014). The

appropriate density of these stations within the city of

Fort Collins is also a factor. An EV market share in the state of 0.5

percent or more by 2020 would necessitate a charging station density of ten to fifteen spread in

heavily-used commercial areas around the city).

Additionally, projected figures of EV ownership will be a criteria in determining the

feasibility of adding more charging stations. As with the current estimations of electric cars,

Figure 3 – Colorado has the eighth largest EV

market share. Source: Treehugger.com.

Page 10: Feasibility Report (Final)

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projected sales figures will be weighed against the amount of charging stations (X amount of

cars per a proposed amount of charging stations within the city of Fort Collins).

Finally, pending or recently passed legislation promoting electric car ownership growth

by offsetting the high initial cost of ownership and fostering a necessity for expanding the

existing EV charging station infrastructure will be taken into account. Legislation clearing the

way for higher electric car sales and infrastructure upgrades will certainly be a major factor in

determining the feasibility of expanding the charging station grid within Fort Collins city limits.

Analysis

EV Sales and Ownership

The year 2012 was inundated with notable milestones for

electric car ownership. Globally, more than 110,000 electric cars

were sold, compared to 45,000 in 2011 (Global EV Outlook, 2013).

In 2013, the number remained almost the same, but the fact remains

that the number of plug-in EVs on the world’s roads is increasing

(EV Rolls, 2013).

While data for electric car registration and ownership was

not made available within the confines of this feasibility study, it is possible to infer the

estimated number of electric vehicles on the road in Colorado by multiplying the market share by

the estimated number of vehicles sold. For the purposes of this report, only BEV (Battery

Figure 4 - Global electric car sales more than

doubled between 2011 and 2012. Source: IEA

EV Outlook.

Page 11: Feasibility Report (Final)

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Electric Vehicle) sales since 2011 will be used.

Figure 5 – BEV Sales By Year: 2011-14. Source: Personally created; data from Electric Drive Transportation Association.

The total number of BEVs sold within the U.S. from 2011 to 2014 is approximately

83,000 (rounding up), according to data from the EDTA (Electric Drive Transportation

Association). Given, as previously stated, that Colorado’s market share of electric vehicles

stands at approximately 0.4 percent, this study will estimate that the number of BEVs in

Colorado since 2011 totals between 3,000 and 3,500.

EV Sales Projections

The United States is one of the largest markets for BEV sales in the world. In 2012, The

U.S. market share for these vehicles was 26%.

Figure 6 - 2012 Global BEV Sales, by country. The U.S. contains more than a quarter of the world BEV market.

Source: IEA EV Outlook.

10,06414,251

47,694

10,873

0

10,000

20,000

30,000

40,000

50,000

60,000

2011 2012 2013 2014 (Jan-Mar)

Battery Electric Vehicle Sales By Year

2011 2012 2013 2014 (Jan-Mar)

Page 12: Feasibility Report (Final)

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Since that figure has been increasing for the past two years, it stands to reason that there will be

significantly more BEVs on the roads by 2020. In fact, assuming a modest market growth of 30

percent per year based on the graph above outlining BEV sales trends over the last three and a

half years (2012 saw a growth rate of 30% over 2011 sales; 2013’s growth rate was 70% over

2012, based on the data provided by the EDTA), there will be at least 300,000 BEVs on U.S.

roads by 2020. Studies like those from JD Power and Pike Research – conducted in 2010 and

2011, respectively – showed hugely optimistic numbers of BEV sales by 2015.

Taking into account the ever-

evolving nature of the market and the

fluctuations in fuel prices as well as initially

high costs of ownership for electric vehicles,

it is extremely difficult to determine accurate

sales figures with any certainty. Based on the

same model for U.S. BEV sales, it can be inferred that Colorado’s market share will also

increase past 0.4 percent. However, even an increase of 0.1 percent on the earlier estimation of

300,000 BEVs by 2020 will mean that at least 15,000 will be on Colorado’s roads.

Fort Collins is a major hub for electric vehicles in the state – thanks in no small part to

Colorado State University. Therefore, this study assumes that there will be significantly more

BEVs on the roads than there currently are. Hence, by this criteria, it is feasible to at least double

the number of charging stations by 2020.

Figure 7 - BEV only sales forecasts based on studies by JD Power

and Pike Research. Source: EV Rolls.

Page 13: Feasibility Report (Final)

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Policy Making

In May, 2013, Governor Hickenlooper and the Colorado State Legislature passed six

different bills (increasing the total to twelve) that address key barriers to EV ownership –

including high up-front costs and limited driving range – and, by association, the necessity for

EV charging stations. Colorado has more policies governing the burgeoning electric car market

than any other state in the Southwest (Salisbury, 2013). These policies are designed to help

alleviate the burden on Coloradans whom are not able or willing to pay the higher initial cost of

EV ownership, and is predicted to significantly increase the number of EVs on Colorado’s roads.

Additionally to Drive Electric Northern Colorado, the aforementioned electric car

partnership joining cities with local businesses to encourage EV growth throughout northern

Colorado, the mayors of Fort Collins (Karen Weitkunat) and Loveland (Cecil Gutierrez) have

endorsed their support in February, 2013 for encouraging growth, primarily as a means to cut

dependence on foreign oil and also cut CO2 emissions:

“We are proud to announce that our cities are jointly leading an effort to make Northern

Colorado the national leader in electric vehicle deployment...Drive Electric Northern

Colorado (DENC) will turn Fort Collins and Loveland into the leaders of an electric

vehicle (EV) movement...As this effort moves forward, citizens will begin to see a robust

framework supporting EVs in the region. Shopping centers will feature free charging

stations...” (Gutierrez and Weitkunat, 2013).

The Fort Collins Parking Plan outlined in the introduction also outlines intent to expand

the EV charging station network, currently in its burgeoning stages with fewer than ten public

charging outlets available. The plan cites the need for EV charging stations as a near-term

Page 14: Feasibility Report (Final)

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solution. However, the plan also emphasizes the importance in expanding this program, as it is

listed as a “high priority” on page 44 of the “Action Plan.” (Parking Plan, 2013).

Conclusion

Looking back to the outcome of doubling the current number of EV charging stations

outlined at the beginning of the report, it is entirely feasible to achieve that outcome by 2020.

Electric vehicle ownership – including BEVs and plug-in hybrids – is forecasted to grow

exponentially in the coming years. It is not only feasible, but

inevitable that Fort Collins will expand its EV charging network to

accommodate that growth. However, the question that remains is

whether the city and the local businesses it partners with will

substantially increase the number of available charging stations.

Moreover, the location of these charging stations is another

point to consider. Fort Collins contains concentrated commercial

areas – Old Town, the Foothills Mall, and the Vine Corridor, just to

name a few – surrounded by residential properties where new

charging stations are not as necessary. Besides stating that there

should be more venues, a map of potential venues have been placed

in Appendix A, signified by orange dots (current charging stations

are signified by green dots). More than one charging station may be placed at any given point to

Figure 8 - A pilot program for EV charging

stations in Fort Collins (Policy 7.8). Source: Fort

Collins Parking Plan (2013).

Page 15: Feasibility Report (Final)

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increase the total number of charging points to and beyond the twenty required to fulfill the

parameters of this feasibility study.

The primary question left unsolved by this feasibility study due to unavailability of

pertinent data is how much it will cost to expand and maintain the charging station grid. While it

cannot be denied that starting costs may be relatively high, the benefits certainly outweigh the

costs, as there will be a significantly higher number of electric cars on the roads of Fort Collins

within the next six years. However, according to the Fort Collins Parking Plan, there is a General

Fund for various parking projects – of which EV charging stations may certainly play a part –

totaling some $33 million that may be tapped in the interest of completing this project (2013).

Recommendations

Obviously, after conducting research for this feasibility report it is clear that the city is

already planning to expand the EV charging station grid beyond its current capacity. Indeed, the

need for a larger grid is near, as technology going into producing and improving electric vehicles

speeds toward the horizon. It is paramount that the city hastily puts the 2013 Parking Plan into

action with regard to electric vehicles and develop a concrete strategy for aggressively expanding

the charging station grid. While it may not be feasible to conduct this plan on a city-wide scale,

well-placed charging stations will be universally popular with electric car drivers and will be

better than not expanding the grid at all.

Page 16: Feasibility Report (Final)

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The scope of this study is, perhaps, too conservative. Based on research conducted for the

report, estimations of how many electric cars will be on the nation’s roads vary wildly depending

on prevailing investigative conditions in any given report. If the city truly does see many times

the amount of electric cars projected to be on the road in 2020 by this feasibility report, it will be

imperative to aggressively expand the EV charging station grid beyond the venues illustrated in

Appendix A.

The core of effective city management is being able to accurately predict the city’s long-

term needs, and accommodating electric vehicles is certainly going to be one of Fort Collins’

needs. The solution to add more charging stations and upgrading the infrastructure will be more

beneficial than denying EV drivers a public service.

Page 17: Feasibility Report (Final)

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References

(2013). Retrieved from Drive Electric Northern Colorado: http://driveelectricnoco.org

Electric Drive Cumulative U.S. Plug-In Vehicle Sales. (2014, March). Retrieved from Electric

Drive Transportation Association:

http://electricdrive.org/index.php?ht=d%2Fsp%2Fi%2F20952%2Fpid%2F20952

EV Future, EV Sales, EV Sales Projections. (2013). Retrieved from EVs Roll:

http://www.evsroll.com

Fort Collins Maps. (n.d.). Retrieved from City of Fort Collins GIS - FCMaps:

http://gisweb.fcgov.com

Gutierrez, K. W. (2013, February 21). Editorial: Fort Collins and Loveland mayors support

regional electric vehicle initiative. Retrieved from City of Loveland:

http://www.cityofloveland.org/modules/showdocument.aspx?documentid=16518

International Energy Agency, Clean Energy Ministerial, Electric Vehicles Initiative. (2013,

April). Global EV Outlook. Retrieved from International Energy Agency:

http://www.iea.org/publications/glovalevoutlook_2013

(2013). Parking Plan Fort Collins: Downtown & Surrounding Neighborhoods. Fort Collins,

Colorado.

Salisbury, M. (2013, May 21). Colorado Beats Five Southwest States in Support of Electric

Vehicles. Retrieved from Colorado Energy News:

Page 18: Feasibility Report (Final)

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http://coloradoenergynews.com/2013/05/colorado-beats-5-southwest-states-support-

electric-vehicles

Shahan, Z. (2014, February 6). Top 10 electric car "states" are... Retrieved from Treehugger:

http://www.treehugger.com/cars/top-10-electric-car-states-are.html

Page 19: Feasibility Report (Final)

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Appendix A: Charging Station Locations Map

Possible venues (orange dots) include (clockwise, from top):

1) Old Town Parking Garage (Mountain Avenue and Remington Street)

2) Walmart Shopping Center vicinity (Lemay Avenue and Magnolia Street)

3) Council Tree Shopping Center (Council Tree Avenue and Ziegler Road)

4) Best Buy/Barnes & Noble (College Avenue and Boardwalk Drive/Troutman Parkway)

5) Drake Shopping Center (Drake Road and Shields Street)

Map of current and proposed EV charging station locations. Source: Personally created using GIS-based “FC

Maps”.